Glossary · Reading the business
In short
A professional investigation of a property's past and current uses to identify potential environmental contamination and liability.
This assessment, performed by an environmental consultant, involves site visits, historical records review, and interviews, but no actual soil or water testing. It aims to identify Recognized Environmental Conditions. If RECs are found, the SBA or lender will typically require a Phase II ESA before loan approval. Factor this into your due diligence timeline and costs.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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